Dr. Kearney’s Option Clinic – Marty Kearney

Good afternoon CBOE Blogging Community!

My name is Marty Kearney, and I’m here representing the Options Institute at The CBOE.The Options Institute, the educational arm of the CBOE has been around for quite a while, helping inform investors, brokers and traders in the use of options.The Instructors at The Options Institute (Jim Bittman, Peter Lusk, Russell Rhoads and I) will post comments from time-to-time, and we are lining up some very good contributors to give you their thoughts and market perspectives as well.We’ve been involved in options for a long time, and we are looking forward to giving you our thoughts on options, the markets, events that might move markets or whatever is happening that we think is relevant to your trading and investing.

You know the drill – we don’t give trading advice (and you shouldn’t be giving it either!).We like to use real stocks (Indexes or ETF’s) with real prices rather than XYZ.We think that’s what you want too.What we really want is your input.Let us know what you think, and we are hoping a dialogue may develop that will enlighten us all!Remember, your post might not show up right away, but we’ll get it up there as quickly as we can.

In addition to posting important items when we see them, each of the instructors at The Options Institute will contribute a regular post, mine will be every Friday.Mine will wrap up what happened during the week and let you know what events might move the markets the following week.

Let’s get started with the weekly wrap-up!

Jan. 14, 2011

 

Dr. Kearney’s Option Clinic

This past week was fairly quiet, as most of the economic data offset each other.That and some traders seemed to flatten out their positions before the long-weekend, Martin Luther King Day is a trading holiday on Monday January 17th.

 

Important index performance last week:

1/7/111/14/11

VIX17.1415.46 !(lowest close in a month)

Feb VIX Future 21.00  18.35 we’ll use front month when possible

SPX 1271.501293.24

DJX  116.75117.87

OEX  573.38582.32

NASDAQ Comp  2703.172755.30

30-yr bond  120’31 (4.411%)  120’29 (4.415%)

Oil88.03  90.68

Gold 1374.001366.10

We had a discussion about the 30-yr vs. the 10-year bond. Do you have a preference?30 is the one quoted in the media, 10 is the one watched by many.

Next week:

Monday no trading

Earnings (there’s a lot, a few we’ll be watching will be):

Tues18th AAPL, IBM, INTC, CITI

Wed 19th Goldman, eBay, WFC

Thurs 20thAMD, GOOG, Morgan, LUV, ISRG

Fri 21stGE, SLB

The latter half of the week we have January option expiration.January open interest is sometimes a little higher than other months due to the fact that some of the expiring options started out as LEAPS 2 ½ years ago.

Due to the holiday shortened week there are not a lot of economic reports being released.The big ones will be Durable Goods, Housing Starts and Permits, the Philly FED and Leading Indicators for December.

Fun things The Institute will be doing the next few weeks:

Webcasts for IB & Scottrade Wednesday, and preparing material for OI Plus II (Intermediate Level, visit www.cboe.com.oiplus for details).

So if you picked up two ideas from today’s Blog:

1.This is your community, we want to hear from you and discuss items you want to talk about.

2.Holiday-shortened week, with 4th quarter earnings arriving, and expiration thrown in could lead to some trading opportunities.

Let’s get Blogging!Dr. Kearney’s Option Clinic is now closed!

Marty Kearney

The Options Institute at The CBOE